Wolverhampton Wanderers have reportedly agreed a deal in principle to sign Joao Palhinha from Sporting Lisbon when the transfer window reopens.

The 24-year-old is currently in the second year of a two-season loan spell with Braga and, as things stand, is due to return to his parent club at the end of the 2019-20 campaign.

However, Portuguese newspaper Correio da Manha claims that Sporting have now agreed terms to send Palhinha to Molineux on a permanent basis.

The deal could reportedly be worth as little as €15m (£13.4m), despite the midfielder having a €60m (£53.7m) release clause in his contract.

Sporting remain hopeful of pushing that transfer fee up further, although they recognise that their bargaining position has been harmed by the financial impact of the coronavirus pandemic.

Palhinha has made 35 appearances for Braga across all competitions this season, including coming up against Wolves in the Europa League group stages.